How Much Contribution

SMSF Technical Education & Strategies

How much of each type of SMSF contribution is allowed?

The following table summarises how much of each contribution is allowable, and what happens if you exceed these levels:

Contribution Type	Maximum amount allowed	What happens if you exceed the maximum
Concessional*	$25,000 p.a. general cap (2013/14) $35,000 for those age 60+ on 1/7/2013 $35,000 for those age 50+ on 1/7/2014	Included in your income tax return and taxed at your marginal tax rate.
Non Concessional**	$150,000 p.a. If your under age 65, you can elect to bring forward two years so that it is counted as $450,000 over the 3 year period.	The excess amount is taxed at 46.5%
Government co-contribution	$500 p.a A maximum of $500 can be received subject to the income limits.	n/a
CGT cap amount^	$1,315,000 lifetime limit (2013/14). Note that one of the items that make up this limit is the CGT rollover retirement exemption which itself has a lifetime limit of $500,000 (not indexed).	Once the lifetime limit is breached, the excess amount will not be exempt, and will be counted towards the non-concessional limit.

* the concessional threshold is indexed to average weekly ordinary time earnings (AWOTE), however it is rounded down to the nearest $5,000.

** the non-concessional contribution threshold is set at six times the concessional threshold

^ the CGT cap amount is also indexed in line with AWOTE, in increments of $5,000 (rounded down).

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